Australia’s lithium and base metal industries are expected to be worth approximately $47 billion in the current financial year amid strong demand in the country’s clean energy technology sector.
The forecast was released in the March 2023 Resources and Energy Quarterly report from the Department of Industry, Science and Resources.
Base metals and critical minerals like lithium are crucial to the production of clean-energy technologies, such as batteries, solar panels, and wind turbines, which will help Australia meet net-zero commitments.
Minister for Resources and Northern Australia Madeleine King said the forecast value of lithium exports had increased threefold since last year and was set to reach $19 billion from 2022 to 2023.
According to the Resources and Energy Quarterly’s forecast, exports of lithium and base metals will equal the export value of combined coal exports by 2027-2028.
However, export earnings are expected to ease $395 billion in 2023-2024 and $346 billion in 2024-2025 as prices continue to normalise.
Minister King said Australia’s resources and energy exports continue to show resilience and have cemented the country’s position as an indispensable global supplier despite the turmoil caused by the war in Ukraine.
Furthermore, the report also found that iron ore prices have rebounded strongly in 2023, reflecting a recovery in Chinese steel production, with export earnings forecast to be worth about $121 billion in 2022-23 compared with $132 billion in 2021-22.
Meanwhile, liquefied natural gas (LNG) earnings are expected to be worth $91 billion in 2022-23, up from $71 billion the previous financial year, as high prices more than offset the impact of smaller LNG export volumes.
Lastly, Australia’s combined coal export earnings are forecast to be worth $128 billion in 2022-2023 compared with $114 billion in 2021-22.
